FINANCES OF THE UNITED STATES. 



287 



decrease in the receipts from all sources, for the 

 year, of $18,481,452.54. 



The expenditures show a decrease as follows : 

 In the War Department, $988,152.74; in the 

 Navy Department, $4,003,374.46 ; in the Inte- 

 rior Department, $983,194.37; in civil and 

 miscellaneous, $10,706,307.18; and in the in- 

 terest on the public debt, $3,118,769.65 due 

 to the funding of 6 per cent, bonds in new 5s 

 and 4 per cent, bonds making a total re- 

 duction of $19,799,788.40. 



The large apparent reduction in the expenses 

 of the Navy Department, however, is not real ; 

 for, by reason of insufficient appropriations to 

 pay the current liabilities of that department, 

 Congress has, by deficiency bill, during the 

 recent session, appropriated the sum of $2,- 

 003,861,27, which is properly chargeable to the 

 expenditures of the last year. 



The receipts for the first quarter of the 

 present year, ending June 30, 1878, and the 

 estimates for the remaining three-quarters of 

 the same fiscal year, were as follows : 



The expenditures for the same period, actual 

 and estimated, will be : 



EXPENDITURES. 



For civil and miscellaneous 

 expenses, including pub- 

 lic buildings, lighthouses, 

 and collect'^ the revenue. 



For Indians 



For pensions 



For military establishment, 

 including fortifications, 

 and river and harbor im- 

 provements, and arsenals. 



For naval establishment, in- 

 cluding vessels and ma- 

 chinery, and improve- 

 ments at navy-yards . . . 



For interest on the public 

 debt... 



Total ordinary expen- 

 ditures . . . 



For the Quarter 



ending Septem- 

 30, 1877. 



$15.221.876 05 

 1,659.572 96 

 7,416,788 59 



2,072,087 48 



8,895,545 51 

 40.466,589 96 



$70.730,905 55 



For the Remaining 



Three-QuartCTi of 



the Year. 



$86,198,628 95 



8,191.427 04 



21,088,216 41 



85,927,962 53 



12,604,454 49 

 52,694,058 70 



$161,699.788 IT 



From the actual receipts for the first quarter 



of the fiscal year and the estimates for the re- 

 maining three-quarters, based upon existing 

 laws, the total revenues for the current year 

 will amount to $265,500,000, and the expen- 

 ditures to $232,430,643.72, which will leave a 

 surplus revenue of $33,069,356.28; and as the 

 amount required for the sinking-fund is $35,- 

 424,804.80, there will be a deficit on this ac- 

 count of $2,355,448.52. The Secretary of the 

 Treasury in his annual report says : 



In the last annual report my predecessor stated 

 that, had the resources of the Treasury, during each 

 fiscal year, commencing with 1862, been sufficient 

 to make a literal compliance with the conditions of 

 the sinking-fund law practicable, a total of $433,848,- 

 215.37 would have been applied to that fund July 

 1, 1876, whereas the actual reduction of the debt, 

 including accrued interest, less cash in the Treas- 

 ury at that date, amounted to $658,992,226 44. On 

 the same basis the amount in the sinking-fund would 

 have reached $475,318,888.78 on the 1st of July, 1877, 

 on which date the reduction of the debt, including 

 accrued interest, less cash in the Treasury, since its 

 highest point in 1865, amounted to $696,273,348.17, 

 or $220,954,459.39 in excess of the amount required 

 by law to be provided for that fund. 



This contract of August, 1876, for the ne- 

 gotiation of $300,000,000 4 per cent, bonds, 

 had so far been executed that $90,000,000 had 

 been sold to the associated contractors on 

 March 1st. In May, the Secretary gave notice 

 of $200,000,000 to be sold, and subscriptions 

 were rapidly made until the aggregate reached 

 that amount. In June, the Secretary entered 

 into a contract for the sale at par, in view 

 of the 4 per cent, bonds authorized to be is- 

 sued by the refunding act. Under this con- 

 tract, invitations having been published, sub- 

 scriptions were opened on June 16th. Within 

 a period of 30 days thereafter, they reached 

 the sum of $75,496,550, payable within 90 days. 

 Every subscription has been paid, and of the 

 proceeds $50,000,000 were applied to the re- 

 demption of 6 per cent, bonds. The residue 

 has been applied to resumption purposes. The 

 annual reduction of interest on the public debt 

 thus made is, in the aggregate, $3,750,000. 



In October last, after the payment of the 

 popular subscriptions, arrangements were per- 

 fected to open further subscriptions to the 4 

 per cent, loan, and a call ,was about to issue 

 for $10,000,000 6 per cent, bonds, but it was 

 temporarily postponed by reason of the agita- 

 tion of the repeal of the resumption act and 

 the remonetization of silver, which the asso- 

 ciates believed would prevent further sales of 

 these bonds. For this reason they declined to 

 offer them, and no further call of 6 per cent 

 bonds was therefore made. 



On the 19th of June, the Secretary informed 

 the associates that it was not anticipated that 

 any future legislation of Congress, or any ac- 

 tion of the Government, would sanction the 

 redemption of the principal, or the payment of 

 the interest, in coin of less value than gold coin. 



The following is a statement of the outstand- 

 ing principal of the public debt of the United 

 States on June 30, 1877: 



